Marketing Key Terms

• What is barriers to entry?

  Obstacles that make it difficult for new firms to enter a market.
• What is a concentration ratio?

  The ratio of the combined market shares of a given number of companies to the whole market size
• What is a confidence level?

  A confidence level is the probability than an outcome will occur
• What is correlation?

  Correlation is the relationship between the values of two variables
• What is data mining?

  Process of discovering patterns and extracting useful information from large datasets.
• What is ethical marketing?

  Marketing that promotes ethical aspects of an organisation's products and activities
• What is an extension stategy?

  Marketing strategy to extend the profitable stage of a product's life (growth and maturity)
• What is intensive distribution policy?

  A distribution strategy that aims to make a product available in as many outlets as possible.
• What is market capitalisation?

  The total value of all the shares issued by a limited company at the current market price for the shares
• What is a market leader?

  The biggest and most successful business in a specific sector
• What is market growth?

  The percentage increase in the size of a market
• What is market mapping?

  Using a market map to position products or competitors in a market on the basis of how they rate according to two selected criteria
• What is a market segment?

  A group of consumers with similar characteristics and needs.
• What is market segmentation?

  Market segmentation is the process of dividing a market into distinct groups of consumers with similar needs, characteristics, or behaviors.
• What is market share?

  The percentage of total sales in a market that a company or product holds.
• What is market size?

  The total sales revenue or volume in the market
• What is a marketing budget?

  A financial plan, setting out the approved amount of expenditure on marketing activities for a financial year
• What is market decline?

  The percentage decline in the size of a market
• What are marketing objectives?

  Aims for achievement through marketing activities, which should contribute to the achievement of the overall business aims
• What is a marketing strategy?

  A marketing plan for achieving marketing and business objectives
• What is mass marketing?

  Marketing a product to the entire market, without segmenting the market
• What is a niche market?

  A niche market is a small, specialized segment of a larger market that caters to a specific customer need or interest.
• What is niche marketing?

  Targeting a specific segment of the market with specialized products or services.
• What is price elasticity of demand?

  A measure that compares the percentage change in demand for a product when there is a percentage change in the price
• What is price penetration?

  Price penetration is where a product is initially offered at a low price to gain market share.
• What is price skimming?

  Price skimming is a pricing strategy where a company sets a high initial price for a new product and then gradually lowers it over time.
• What is the product life cycle?

  Stages through which a product's market progresses, from introduction to the market to decline and withdrawal from the market
• What is the promotional mix?

  A specfic combination of promotion policies and activities within the "promotion" element of the marketing mix. The promotional mix includes advertising, sales promotion and face-to-face selling
• What is quota sampling?

  Non-random stratified sampling. This is used when the total population is divided into different categories, but a sampling frame for the population is not available
• What is random sampling?

  Random sampling is a method of selecting a sample from a population in which each individual has an equal chance of being chosen.
• What are repeat sales?

  Repeat sales refer to purchases made by customers who have previously bought a product or service from a particular company.
• What is sales value?

  The amount of revenue from sales in a given period of time
• What is sales volume?

  The amount of sales of an item in a given period of time
• What is sampling?

  Obtaining data from a small number of individuals in a population, in the expectation that the results from the sample will be representative of the population as a whole
• What is stratified sampling?

  Stratified sampling is a sampling technique where the population is divided into distinct subgroups or strata, and a random sample is taken from each stratum in proportion to its size.
• What is target marketing?

  Identifying and focusing on a specific group of consumers who are most likely to be interested in a product or service.